Hyundai's Euisun Chung says group must 'internalize' AI technologies to maintain competitiveness

Hyundai Motor Group Executive Chair Euisun Chung on Monday urged the group to internalize artificial intelligence at an unprecedented pace, warning that relying on externally developed AI will not be enough to survive intensifying global competition.

Euisun Chung, executive chair of Hyundai Motor Group, third from left, delivers a New Year’s message to group employees at the group’s 2026 New Year gathering on Jan. 5. From left are Sung Kim, president and head of the Strategy and Planning Division; Jang Jae-hoon, group vice chair; Chung; Kim Hae-in, executive vice president and head of Corporate HR; Song Ho-Sung, CEO of Kia Corporation; and Lee Gyu-suk, CEO of Hyundai Mobis. [HYUNDAI MOTOR GROUP]

Hyundai Motor Group Executive Chair Euisun Chung on Monday urged the group to internalize artificial intelligence at an unprecedented pace, warning that relying on externally developed AI will not be enough to survive intensifying global competition.

Chung underscored the need to internalize AI at the group’s New Year gathering held Monday, warning that “we do not have much time left.” The event was held in the format of a prerecorded roundtable discussion attended by Chung and Vice Chairman Chang Jae-hoon, among other senior executives.

Chung said that 2025 had been a year marked by unprecedented changes in the business environment, including an unusually challenging global trade climate.

“This will be the year when the risk factors we have long worried about turn into reality right before our eyes,” he said. He pointed to geopolitical conflicts and global trade wars emerging in various forms, worsening business conditions and profitability, while competitors expand their global market presence at an even faster pace.

What Chung emphasized most was the need for “transformation in work methods and leadership.”

“When the environment around us becomes more difficult and competition intensifies, the strongest pillar that will protect us is a transformation rooted in deep reflection,” he said. “Above all, what matters most is fast and clear communication and agile decision-making that is free from formality. Let us work more efficiently.”

Turning to AI competitiveness, Chung said that the group’s current capabilities remain insufficient, citing rival Tesla as an example of what Hyundai must aspire to.

Hyundai Motor’s four-legged MobED platform robot [HYUNDAI MOTOR]

“Tesla has internalized all of its core AI capabilities — from dataset collection, construction and labeling to large-scale pretraining and the operation of data centers optimized for its models — which has enabled it to pursue advanced goals such as artificial general intelligence and create an overwhelming gap that competitors can never replicate,” he said. “We must go beyond simply fine-tuning external models and instead internalize core AI technologies themselves. Whether AI is seen merely as a tool or embraced as the driving force behind corporate evolution will determine a company’s future.”

Chung also stressed the importance of securing AI talent. “The driving force that elevated Korea’s manufacturing industry to the global stage was talent,” he said. “But in the AI era, the formula for success fundamentally changes. A world is coming in which AI will be capable of making management decisions. The time left for companies to maintain a competitive edge solely through individual excellence is limited.”

“If we fail to secure AI-driven competitiveness based on talent starting now, it will be nearly impossible for Hyundai Motor Group to maintain its current standing in the next generation,” he added.

At the same time, Chung struck a note of optimism. “AI is not an insurmountable wall, but a powerful weapon we can use to win,” he said. “At its core, AI competition is about data and AI. As the focus shifts toward physical AI, the value of data from moving entities such as automobiles and robots, as well as manufacturing process data, will become increasingly scarce. This is a powerful advantage that big tech companies cannot easily replicate.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom. BY KO SUK-HYUN [kim.minyoung5@joongang.co.kr]